THE Institute of Public Accountants (IPA) has continued its support of the small business sector through its 2016 pre-Budget submission to the Government.

“The IPA’s submission puts forward a number of key policy recommendations, focusing particularly on the key pillars required for a more productive and dynamic small business sector,” said IPA chief executive officer, Andrew Conway.

“However, the recommendations within the submission are presented against the background of a looming economic downturn.

“Our Australian Small Business White Paper published in late 2015 shows that after more than two decades of prosperity driven by booming prices for mineral exports, Australia now faces the real prospect of a sustained fall in living standards.

“Apart from a deteriorating federal budget, the core of the nation’s economic problem is its failure to lift business productivity for much of the past 15 years.

“Sadly, this means that Australia’s businesses collectively are barely more efficient than they were at the start of this century.

“This situation must be arrested now if we are to continue to enjoy the standard of living we enjoy today.

“To this end, we are hopeful that the Government will take serious consideration of our key recommendations which include a loan guarantee scheme, venture capital funding, building an innovation system, boosting skills and human capital, and the need for robust tax reform,” said Mr Conway.

For more information on the IPA’s pre-Budget submission go to http://bit.ly/1PVGJX7

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than with more than 35,000 members and students in over 65 countries.  The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List. 

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THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia, Mr Glenn Stevens, in Sydney from 9:30am to 12:30pm this Friday, 12 February 2016.

At its meeting on 2 February 2016 the RBA decided to leave the cash rate unchanged at 2.0 per cent. The Governor noted in his statement that ‘new information should allow the Board to judge whether the recent improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand.’

The Governor concluded that ‘continued low inflation may provide scope for easier policy, should that be appropriate to lend support to demand.’

The Australian economy continues to demonstrate resilience even though the global economy is growing at a slightly lower pace than earlier expected. The Governor noted that ‘the available information suggests that the expansion in the non-mining parts of the economy strengthened during 2015 even as the contraction in spending in mining investment continued.’

In relation to China, the February Statement on Monetary Policy noted that ‘the outlook for China’s growth is a significant uncertainty for the outlook for the Australian economy.’

The Chair of the House Economics Committee Mr Craig Laundy said ‘the committee will examine these issues in more detail and examine the RBA about whether it is confident that the current monetary policy settings will effectively encourage growth and inflation consistent with the target for coming years.’

Public Hearing Details 

Committee: House of Representatives Economics Committee
Venue: SMC Conference & Function Centre, Ionic Room (ground floor)
66 Goulburn Street Sydney
Date:Friday, 12 February 2016
Time: 9.30am to 12.30pm
Webcast: The hearing will be webcast (audio only) http://webcast.aph.gov.au/livebroadcasting/

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VICTORIAN business sentiment about the Victorian and Australian economies over the next year has risen strongly, according to the Victorian Chamber of Commerce and Industry’s Survey of Business Trends and Prospects released today.

The Victorian Chamber’s Survey of Business Trends and Prospects summarises the views of over 500 metropolitan and regional Victorian businesses across seven major sectors.

Over the December quarter 2015, 23 percent of respondents said they anticipate stronger national economic growth over the next year. Sentiment for the Victorian economy also rose, with 23 percent of respondents also expecting better economic conditions in the year ahead.

Businesses reported growth in net sales, exports, employment and investment in plant and equipment during the December quarter. However, wages and other labour costs also continued to rise, squeezing profits.

“Despite the rise in business sentiment, business confidence remains fragile and more must be done to sustain and grow this newfound optimism,” said Victorian Chamber Chief Executive Mark Stone.

“These findings point to an opportunity for both state and federal governments to deliver business-focused 2016-17 budgets that convert this sentiment into medium and long-term economic growth and job creation.

“Victorian business is looking to governments to deliver budgets that reduce the cost of doing business, drive productivity through major infrastructure projects, boost workforce skills and grow our international trade capabilities.”

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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WITH the shifting sands on tax reform and the GST debate wavering, talk of losing work related deductions is a genuine threat to taxpayers’ rights, according to the Institute of Public Accountants (IPA).

The House of Representatives Economic Committee is currently investigating trading tax deductions for lower tax rates and is due to report at the end of February.

“While a reduction in personal income tax is an attractive proposition to most people, it will not compensate the majority for the loss in having the right to claim legitimate work related deductions,” said IPA chief executive officer, Andrew Conway.

“Under such a proposal, up to nine million Australian taxpayers would lose their existing ability to claim deductions relating to expenses incurred in earning their income; a fundamental entitlement under our tax system.

“And employees should not be under the false assumption that employers will pick up the slack.  Most businesses in Australia are small businesses who can ill afford to fund the shortfall.

“Small businesses in particular will be affected where an employee chooses not to buy tools of trade, such as mobile phones and laptops, because they will no longer be able to claim them as a legitimate deduction. 

“Loss of essential tools of trade will lead to further deterioration of Australia’s already declining productivity.

“Taxpayers may not be aware that self-education expenses are a component of work related deductions.  Any talk of losing the ability to claim a deduction for self-education is contrary to the Government’s push for innovation,” said Mr Conway.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than with more than 35,000 members and students in over 65 countries.  The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.   

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The Standing Committee on Indigenous Affairs is inquiring into models of schooling, including residential schools that are found throughout Australia. We want to identify what works for Aboriginal and Torres Strait Islander students, their families and communities, as well as final high education and training or employment outcomes.

Thursday 11 February, 11.30 am – 1.00 pm
Committee Room 1R4

11.30 am Prime Minister’s Indigenous Advisory Council

• Mr Warren Mundine, Chairman
• Mrs Leah Armstrong, Member
• Mr Andrew Penfold, Member

12:15 pm Australian Indigenous Education Foundation

• Mr Andrew Penfold, Executive Director
• Ms Renee Steenstra, Projects Director

Further information on the inquiry, including a link to an online questionnaire for Aboriginal and Torres Strait Islander students, their families and educators, can be found on the inquiry website at www.aph.gov.au/educationalopportunities. The Committee will also continue to accept submissions to the inquiry throughout February 2016.

The public hearings will be webcast live at http://www.aph.gov.au/News_and_Events/Watch_Parliament.

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THE House Tax Committee will hold a public hearing tomorrow with tax advisory bodies. The hearing will set the scene for the Committee’s public hearing with the Commissioner of Taxation and the Inspector-General of Taxation on Wednesday, 24 February 2016.

The ATO is working with tax agents on several IT initiatives. For example, the ATO is maintaining current systems for longer to help tax agents change to new platforms; and has agreed to improve its IT systems to help tax agents and their clients.

However, tax groups have also raised concerns. These include:

• how soon the ATO will make promised improvements to its systems
• whether pre-filled data is accurate
• whether ATO actions will interfere with the agent-client relationship
• whether the new standard business reporting system will handle increased demand in Tax Time 2016.

The Committee Chair, Mr van Manen, said, “The ATO is a lead agency in the Governments’ drive to be more efficient and provide better services online. We support the ATO’s work here. But the ATO needs to effectively involve the tax community and ensure changes meet their needs. We look forward to their views and their suggestions for improvements.”

The hearing will discuss other topics in tax, including the cash economy, the ATO’s standards of customer service, the tax gap, and changes in how the ATO manages tax disputes.

Public hearing program
Wednesday, 10 February 2016
Committee Room 1R1
Parliament House, Canberra

Time
4.10 pm – 5.30 pm

Organisations
Chartered Accountants Australia and New Zealand, Council of Small Business Australia, CPA Australia, the Institute of Public Accountants, and the Tax Institute.

For media comment: please contact Jessica Reid on 0437 731 858.

For information about the inquiry: please contact the committee secretariat by telephone (02) 6277 4821 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or visit the committee website www.aph.gov.au/taxrev

Live broadcast: go to www.aph.gov.au/live

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THE Future Asia Business Summit will see Westpac executive David Lindberg explore current economic trends, market insights and challenges in China, along with what local businesses can do to set themselves up for future success.
 
More than 300 business and government representatives are expected at the event, that is part of the annual Sydney Chinese New Year Festival – the biggest celebration of the Lunar New Year outside mainland China.
 
Lord Mayor Clover Moore said the summit presented Sydney businesses with a unique opportunity to learn how they can benefit from China’s economic growth.
 
“China is Australia’s largest export market for both goods and services – accounting for nearly a third of total exports – and a growing source of foreign investment,” the Lord Mayor said.
 
“With the recent signing of the China-Australia Free Trade Agreement, and China’s ongoing transition to a services and consumption-led economy, now is the time for the city’s businesses to take advantage of new openings in China.
 
“Our future economic competitiveness depends greatly on the connections we make with our Asian neighbours – not only in the professional services and financial sectors, but also in retail, tourism, education and the creative industries.
 
“Today’s summit will give businesses an unprecedented opportunity to learn from some of Australia’s foremost China business experts on how they can benefit from both recent developments and future trends.”
 
David Lindberg, Westpac’s Chief Executive of Commercial and Business Banking, said: “Westpac is excited to partner with the City of Sydney to assist the business community to take advantage of emerging opportunities across Asia.
 
“China is transforming itself in significant ways as it transitions to the next stage of economic development. It is moving from a manufacturing and construction-led economy to a services and consumer-led economy. 
 
“This provides a vast landscape of new opportunities for the Australian services sector, where today services account for 70 per cent of our economy but only 20 per cent of our exports. This presents great prospects for healthcare, education, professional services, tourism, hospitality and agricultural services – it is an exciting time to be an Australian business.”
 
On recent global economic news, Mr Lindberg said: “It isn’t as bad as the headlines would have you believe.”  He urged businesses to continue to invest toward our shared prosperity.
Following Mr Lindberg’s keynote address, he will be joined by a panel discussion featuring four experts on Australia-China business and economic relations: 

• Benjamin Sun – Director at Think China, a China-focused e-commerce and digital marketing agency;
• Joy Chen – Executive Director and NSW Leader of China Business Group at Ernst & Young;
• Elliot Clarke – Director and Senior Economist at Westpac; and
• Sara Cheng – Senior Manager of China Practice at NSW Business Chamber.

The summit is the first of several City-led opportunities this year for Sydney businesses to take advantage of emerging economic opportunities in China.
 
To celebrate the 30th anniversary of Sydney’s sister city relationship with Guangzhou, the City will lead a delegation to the southern Chinese economic hub from 30 May to 2 June, showcasing Sydney’s dynamic economy, industry and culture to potential Chinese partners.
 
Events are being run by the Australia China Business Council, Sydney Symphony Orchestra, University of Sydney, University of Technology Sydney and 4A Centre for Contemporary Asian Art, and will include a full-day business summit, sustainability forum, international student alumni event, contemporary art exhibition and concert.
Other City initiatives to strengthen connections with Asia include:

• Providing ‘China Connect’ training workshops to help local tourism and retail providers understand and respond to the needs of Chinese customers;
• Sponsoring the annual Sydney China Business Forum;
• Working with retailers to take advantage of promotional opportunities during Chinese New Year; and
• Sponsoring and hosting last year’s successful China Australia Millennial Project, which brought together young Chinese and Australian entrepreneurs.

These programs are part of the City’s 10-year Economic Development Strategy, that aims to strengthen business competitiveness, improve business productivity and capacity, and promote opportunities for the local business community.

www.cityofsydney.nsw.gov.au

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Lord Mayor Clover Moore will today host the City of Sydney’s Future Asia Business Summit, a forum giving the Sydney business community an insight into emerging opportunities in Asia.

Westpac’s Chief Executive of Commercial and Business Bank, David Lindberg, will present on current economic trends and challenges in China, and how local businesses can benefit. Mr Lindberg will be joined by a panel of Australia-China business experts.

More than 300 business and government representatives will attend the event that is part of the City’s annual Chinese New Year Festival.
 
WHEN: TODAY - 12pm on Tuesday 9 February 2016
 
WHERE: Sydney Town Hall – 483 George Street
 
CONTACTS: City of Sydney Senior Media Adviser Keeley Irvin on 0448 005 718 or This email address is being protected from spambots. You need JavaScript enabled to view it.

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